Somebody must have raised some money at some time in the past, as the 7 million in net book value of property on the assets side is matched mainly by net worth and an unsecured note of 1.5 million.
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Then there is the price-to-book ratio, which measures a company's stockmarket value against the book value of its assets.
But the oil-service firms will get only the book value of their assets, paid in government bonds and with deductions for any labour or environmental liabilities the government adduces.
And the rise in the book value of their equity holdings adds to the proportion of risky assets held by life companies, adding also to the mismatch of duration.
But the Financial Times reported that financial stocks are trading above the book value (assets, including cash, minus liabilities) of the companies for the first time since July.
The company acquired the assets of Allied Capital below book value in April 2010, maintained its dividend of 35 cents per share for the past seven quarters and returned shareholders almost 25% per year on average since 2008 (with dividends reinvested).
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The shares have climbed more than 35% since, yet still trade at a discount of 23% to book value, the difference, or net worth, between its assets and its liabilities.
As such, their book value, or the difference between assets and liabilities, more accurately reflects market conditions that of other companies.
The Price to Book ratio is a formula that represents the most recent share price of a company compared to its book value per share (the residual dollar value for common shareholders after assets are liquidated and all debtors are paid).
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Wells Fargo, which does not have as much exposure to international or trading businesses, is the only one of the four biggest U.S. banks by assets to trade at more than book value, 1.18 times.
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